#05 Approve stipulation with Clean Wisconsin for Water Conservation ProgramDEPARTMENT OF PUBLIC WORKS MEMORANDUM
August 17, 2009
TO: City Council
FROM: Daniel L. Lynch, PE, Utility Director
SUBJECT: Authorization for the City Manager to Enter into a Stipulation with Clean
Wisconsin for a Water Conservation Program
Summary
The City of Janesville has applied for a water rate adjustment with the Public Service
Commission of Wisconsin (PSC). The PSC has rate-setting authority over Wisconsin
water utilities and can allow third party intervention on an individual rate case when they
determine there is justification. Intervener status gives the third party equal status with
the City staff and PSC staff before the PSC Commissioners. Clean Wisconsin is an
advocacy group for clean water and air with members throughout Wisconsin. Clean
Wisconsin has been granted Intervener status on a number of recent water rate cases.
The Intervener status provides Clean Wisconsin a very effective platform for advocating
the creation of municipal water conservation programs in Wisconsin. Utility staff has
negotiated a mutually agreeable solution with Clean Wisconsin which is outlined in the
following draft stipulation.
Department Recommendation
Utility staff support proceeding with the development of a water conservation program
having an annual cost of approximately $75,000. The first task of the program will be
the development of a comprehensive water conservation plan. The plan will be
completed within six months from the day that the new water rates are implemented and
it will determine exactly how the conservation program will operate. The conservation
program will include: community education, residential rebates and commercial/
industrial audits.
Suggested Council Action
Move to Authorize the City Manager to enter into a stipulation with Clean Wisconsin for
a water conservation program including an annual budget of approximately $75,000.
City Manager Recommendation
The City Manager concurs with the department recommendation
Analysis
Over the past several years water conservation has been getting more and more
serious consideration. Water conservation is no longer the domain of the water-starved
western states; the historically water-rich upper Midwest states are requiring the
development of water conservation programs. The recently-adopted Great Lakes Water
Compact, which was signed by the governors of the ten Great Lakes states, requires
the individual states to adopt and implement water conservation programs. In
Wisconsin, the governor hosted a water conservation symposium in 2006 and has
initiated the Conserve Wisconsin campaign which in part directed the PSC and
Wisconsin Department of Natural Resources (WDNR) to identify initiatives to reduce
water use in Wisconsin. The PSC and WDNR joint report to the governor included the
following initiatives:
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Promoting the use of more efficient plumbing devices to perform the same task
while using less water
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Implementing water conservation rates which will send a price signal to
customers to minimize inefficient water practices
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Water reuse and recycling means using a water supply that meets the minimum
quality requirements for its intended purpose.
These initiatives are being promoted throughout the state and will be key elements of
the City’s proposed comprehensive water conservation plan.
Clean Wisconsin has intervened in several water rate cases to advocate for water
conservation rates and initiatives. The recent Waukesha water rate case was the first
municipal rate case to be intervened. Waukesha, Clean Wisconsin and the PSC staff
reached an agreeable resolution of the issues so that a contested case hearing was
avoided. Since this Waukesha intervention, Clean Wisconsin has intervened in the
Green Bay, Madison, and Janesville water rate cases. Clean Wisconsin has expressed
their intention to continue intervening in the rate cases of the largest Wisconsin
communities as those communities apply to the PSC for rate adjustments. It appears
that they are trying to establish a base line for the component parts for municipal water
conservation programs.
Both Madison and Waukesha have already prepared water conservation plans and
have begun conservation programs. A major component of each program is toilet
rebates. Other communities which have initiated some level of water conservation
programs on their own include the cities of Marshfield, Kaukauna, Fitchburg and the
village of Allouez. Clean Wisconsin is well within its legal right to intervene in these rate
cases. Their intervention in the Waukesha case was apparently very well received by
the three Commissioners of the PSC. The Commissioners were complimentary of
Clean Wisconsin’s goals, approach and apparent intention. Although a resolution with
Waukesha was reached, the City was ordered by the PSC to pay Clean Wisconsin over
$7,000 in legal bills.
The draft stipulation attached to this memorandum does in fact reflect a compromise
from the initial positions of the City and of Clean Wisconsin.
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The cost of the program is more than the City wanted, but significantly less than
initially requested.
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The residential conservation rates will be designed by the PSC staff, as in the
City’s initial application.
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The stipulation allows time to develop a water conservation plan. The
conservation program will be designed around the needs of Janesville following
the development of a conservation plan.
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The conservation program will be Janesville-specific, based on a comprehensive
water conservation plan developed for Janesville. The plan will determine what
the best approach to water conservation in Janesville will be.
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The Janesville conservation plan will determine how the financial resources
allocated to this program are expended. Financial allocations will not be arbitrary
or based on what is done in another community.
The City Council has limited choices available. If the Council decides not to proceed
with the conservation program, the PSC can order the City to implement the program as
part of the water rate case. Rejecting the conservation program and draft stipulation will
essentially cause the City’s water rate case to become a contested case. In a
contested case the arguments of the City and Clean Wisconsin are heard by the three
Commissioners of the PSC instead of an administrative law judge. The Commission will
then make their ruling. With the PSC’s current support of water conservation, it is
unlikely that the City would be successful in opposing a local program. Additionally a
contested case would be much more costly for the City because of the legal nature of
the proceeding and the attorney bills for both sides will be paid by the City regardless of
the outcome.
cc: Eric Levitt, City Manager
Jay Winzenz, Director of Administrative Services
BEFORE THE
PUBLIC SERVICE COMMISSION OF WISCONSIN
______________________________________________________________________________
Application of Janesville Water Utility, Rock County,
Wisconsin, for Authority to Increase Water Rates Docket No. 2740-WR-107
STIPULATION OF JANESVILLE WATER UTILITY AND CLEAN WISCONSIN
______________________________________________________________________________
WHEREAS Janesville Water Utility (“Janesville”) has pending before the Public Service
Commission of Wisconsin (“Commission”) a request to establish water rates in the above-
captioned proceeding (“Proceeding”);
WHEREAS Clean Wisconsin was granted full party status in this Proceeding;
WHEREAS Janesville and Clean Wisconsin (each individually a “Party” and collectively the
“Parties”) wish to agree to the issues in this Proceeding discussed herein;
NOW THEREFORE Janesville and Clean Wisconsin hereby agree that the Commission may
incorporate the following provisions in its final decision in this Proceeding.
1.Scope of Agreement. This Stipulation represents a complete and final agreement
regarding the issues in this Proceeding discussed herein between the Parties.
2.Rate Design. The Parties agree to the rate design proposed by Commission staff in this
Proceeding (PSC REF# ____________). Specifically, the Parties agree to the following
rate design for the residential class:
a.First _____ cubic feet per quarter charged at $____ per 100 cubic feet;
b.Next _____ cubic feet per quarter charged at $____ per 100 cubic feet;
c.Over _____ cubic feet per quarter charged at $____ per 100 cubic feet.
3.Conservation Program. The Parties agree that Janesville will establish a conservation
program with an annual budget of $75,000. In the first year of the program, Janesville
will use part of this budget to conduct a comprehensive conservation study and plan.
Janesville will file this study and plan with the Commission within six months after the
date the final decision is issued in this Proceeding. Based on this study and plan,
Janesville will design and implement the conservation program within one year after the
date the final decision is issued in this Proceeding. This program will include, at a
minimum, community education, a residential rebate program, and commercial,
industrial, and public authority audits.
4.Effective Date. This Stipulation shall become effective and shall bind the Parties on the
date of its execution by both Parties.
5.Commission Authority. The Parties agree to present this Stipulation as an exhibit in this
Proceeding.
WHEREFORE the Parties have caused their duly authorized representatives to execute this
Stipulation as of the date indicated below.
JWU
ANESVILLE ATER TILITY
By: _________________________________
Name: ______________________________
Title: _______________________________
Date: _______________________________
CW
LEAN ISCONSIN
By: _________________________________
Name: ______________________________
Title: _______________________________
Date: _______________________________
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